Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Niger. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Have a notary prepare and notarize the company bylaws | 5 days | 3% of capital |
| 2 | Deposit the initial capital in a bank and obtain a receipt | 1 day | no charge |
| 3 | Register company statutes | 1 day | XOF 6,000 fixed registration fees and XOF 15,000 for stamps ( 10 pages x XOF 1500) |
| 4 | File documents with the Commercial Registry at the Greffe du Tribunal (RCCM) | 2 days | XOF 29,500 (Frais de depot) for deposit with legal clerk + XOF 45,000 registration fee (XOF 20,000 stamp tax for the Greffe + XOF 25,000 stamp tax for registry) |
| 5 | Publish the company formation notice | 1 day | XOF 35000 |
| 6 | Register with the tax authorities representatives at RCCM | 5 days | XOF 3,500 |
| * 7 | Obtain criminal certificate of directors | 1 day, simultaneous with procedure 6 | XOF 500 |
| 8 | Register with the Caisse Nationale de Sécurité Sociale (CNSS) | 1 day | no charge |
| 9 | Register with the Agence Nationale de la Promotion de l’Emploi (ANPE) | 1 day | XOF 1,000 per local worker, assuming 10 workers |